New Conservative hiring credit ineffective, wasteful: PBO

The Conservatives’ proposed Hiring Credit is an expensive, ineffective giveaway to corporations that should be scrapped, the NDP said today. According to the Parliamentary Budget Officer, the Conservative Hiring Credit will create – at most – 800 jobs, at a cost of $550,000 per new job.

“Time and again, we’ve seen Liberals and Conservatives misuse EI funds that belong to workers and employers,” said Nathan Cullen (Skeena-Bulkley Valley), NDP Finance critic. “Now Conservatives are using these funds for a credit that won’t even do what it’s supposed to – create more jobs for Canadians.”

The PBO report reveals that due to the Conservatives’ rate freeze and cuts to benefits, the surplus in the EI Account will be nearly $3 billion in 2015. Meanwhile, access to EI benefits is at an historic low. Fewer than 4 in 10 unemployed Canadians currently qualify for benefits.

“Workers pay premiums so that EI is there for them in times of need,” added Robert Aubin (Trois-Rivières), NDP critic for Employment Insurance. “Instead of funding a wasteful tax credit, Conservatives should be using the surplus in the EI Account to fix EI so that it works for all Canadians.”

New Democrats have called for job creation measures to be funded from general revenues instead of EI funds.

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For more information, please contact:

Véronique Breton, Press Secretary, 613-408-1483 or veronique.breton@parl.gc.ca